Principal Financial Group, Inc. Announces Company’s Application to the |
U.S. Department of the Treasury's Capital Purchase Program
November 19, 2008
DES MOINES, Iowa--(BUSINESS WIRE)--Principal Financial Group, Inc. (NYSE: PFG) today announced that it has applied to participate in the U.S. Department of the Treasury's Capital Purchase Program (TCPP), as a savings and loan holding company subject to oversight of the Office of Thrift Supervision. If The Principal participates in TCPP, the company would issue preferred shares and warrants to the Treasury. The amount for which a company can apply is prescribed by the application. The Principal has applied for and could participate up to $2 billion.
As a diversified financial services company providing investment, banking, retirement and insurance products to businesses and individuals, the company is a significant provider of credit and liquidity to U.S. corporate and consumer markets. The proceeds will allow the company to continue to: fulfill that role; support and capitalize the company’s federal savings bank subsidiary, Principal Bank; and support the ongoing organic growth needs of the company’s operating units.
Reflecting the company’s financial strength, operating performance and ability to meet its obligations, on November 7, 2008, Principal Life Insurance Company’s insurance financial
strength rating was affirmed by Moody’s Investors Service at 'Aa2', Excellent, with a stable outlook, and on September 5, 2008, Principal Life’s insurer financial strength rating was
affirmed by Fitch Ratings at 'AA', Very Strong, with a stable outlook. The company believes it is prudent to consider the TCPP as another option to build on its position of financial
strength, by adding to its capital cushion in a time of volatile and uncertain market conditions.
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